China to set up CTV plant in UAE

Several Chinese manufacturing projects are coming up throughout the Middle East, including a Dh22 million ($6 million) colour television plant in the UAE, a Dh55 million ($15 million) oil pipeline flanges factory in Qatar, a Dh73.5 million ($20 million) cable unit in Saudi Arabia, and an ambitious industrial park housing at least 10producers of high-tech equipment in Bahrain.

"These projects are only the precursors to several more," stated Hao Feng, chairman and general manager, Chinamex, at the Chinese Commodities Fair currently ongoing in Sharjah.

The exhibition has already seen deals worth Dh173.75 million ($47.34 million) and attracted 4,000 trade visitors from 19 countries in the region on just the first day, he added.

The fair is expected to garner total deals worth between Dh1.1-Dh1.85 billion ($300-$500 million), he estimated.

"China is opening up in a major manner, and we're seeking to expand operations right through the Middle East, Africa and West Asia, through our window of opportunity in Sharjah," he said.

He explained the CTV project would most likely come up in Jebel Ali, with the bulk of the production - projected at 80,000 sets in the first phase - to be destined for European markets, while the remainder would go to meet local market demands.

"Production will likely start next year," he added, while quipping: "While the CTV sets will be produced by the Tong Jia company, we might well market it under the 'Chinamex' brand."

The official noted the Qatar flanges project is already underway, with production set to start in first-half 2003. "This will be the biggest plant of its kind yet in the Middle East."

On the Saudi cable project, he said negotiations with the government are currently ongoing, with the Kingdom having offered preferential treatment.

"Our Bahrain project, likely to be named Chinamex Industrial Park, will see 10 Chinese companies involved in high-tech product manufacture: advanced industrial paints, communication equipment, protective gear for security personnel, metal-coating chemicals to render the equipment long-lasting, etc," he said.

The park's likely location is Manama.

The official said Chinamex itself has come a long way since its establishment in April 2000: "We've staged 13 fairs, had over 1,800 Chinese companies to exhibit their wares and, above all, concluded deals worth around Dh7.34 billion ($2 billion) - not counting the ongoing fair, which is our biggest to date outside China."

Hao said Chinamex's strategy would remain on ensuring quality products being displayed at its exhibitions while seeking to forge closer trade ties throughout the region. He said that around 20 countries China has targetted report total foreign trade worth over Dh1.85 billion ($500 million).

"Of this, China today has only a 5 per cent share, indicating considerable upside potential."

He said that apart from UAE businessmen, the ongoing fair has seen visitors from Kazakhstan, Turkmenistan, Turkey, Syria, Lebanon, Bahrain, Yemen, Kuwait, Qatar, India, Saudi Arabia, Iran, Iraq, Jordan and Syria.